"We are happy"

Toshiba Corp. first approach Hollywood in the early 1990s with modest ambitions and capital. It paid $500 million for a 5.6% stake in Time Warner Entertainment, the Time Warner Inc. subsidiary that owns cable systems, Home Box Office, and the Warner Bros. studio. The investment was small change for...

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Bibliographic Details
Published in:Forbes 1995-05, Vol.155 (10), p.44
Main Author: Eisenstodt, Gale
Format: Magazinearticle
Language:English
Subjects:
Alliances
Cable TV
Case studies
Electronics
Electronics industry
Entertainment industry
Expansion
Foreign investment
Foreign partnerships
Market potential
Nuclear power plants
Presidents
Strategic planning
Success
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Summary:Toshiba Corp. first approach Hollywood in the early 1990s with modest ambitions and capital. It paid $500 million for a 5.6% stake in Time Warner Entertainment, the Time Warner Inc. subsidiary that owns cable systems, Home Box Office, and the Warner Bros. studio. The investment was small change for $55-billion Toshiba, which has used its Time Warner stake to enhance its position in the future of electronics hardware. In 1992, Toshiba and Time Warner began developing a new technology called digital videodisc (DVD). In early 1995, they announced a DVD format that is likely to give the partners an edge over Sony and Philips. Media research firm Paul Kagan Associates estimates annual sales of DVD players and discs could reach $6 billion in 5 years. Toshiba will also be teaming up with Time Warner, US West, and Itochu Corp. to invest some $470 million in Japan's cable television business, recently liberalized by the Japanese government. On still another front, Toshiba hopes to open Warner Bros. Studio Stores in Japan.
ISSN:0015-6914
2609-1445